KAR Global, the parent company of Carmel, Ind.-based ADESA, which conducts RV auctions, has issued $550 million in preferred stock at an initial conversion price of $17.75 per share.
The company says it will use proceeds from the sale to expedite the resumption of its operations, sustain the company’s technology platforms and help it navigate the industry and economic recovery.
“KAR took early and decisive steps in response to COVID-19 to protect the safety of our employees and customers, preserve our capital position and keep our operations moving forward,” said Jim Hallett, chairman and CEO of KAR. “This transaction will help us continue to support our global customers and further accelerate our digital transformation. Apax is the right strategic partner for our company, employees and stockholders, and their investment reinforces the strength of our brands, market position and long-term strategy for growth and expansion.”
London-based Apax Partners, a global private equity advisory firm, led the investment.
KAR Global operates 74 ADESA auction locations in North America.